Malaysia has continuous growth in cellular mobile industry for last one and a half decade. In 2011 Malaysia mobile penetration rate is nearly 121 percent (2011) where as in Southeast Asia it was around 82 percent (2011). So, mobile penetration rate in Malaysia higher than neighbor countries. In 2014, mobile penetration rate in Malaysia is around 141 percent. But to escalate actual mobile penetration rate ITU (International Telecommunication Union) conducted a survey in Asia pacific region in which 41 percent of Malaysian subscriber has multiple mobile phone or land phones. Where as in Singapore 21 percent subscribers has multiple mobile devices.
On the other hand number of smart phones user significantly increases in last few years, According to the "TigerMine Research" smart phone penetration in Malaysia is around 80 percent. Where as in Southeast Asia around 87 percent subscriber uses featured phone(2014).
According to the Geo socioeconomic report (2012), telecommunication industries contributes on Malaysian GDP at a higher rate (around 5 percent) compare to the Asia Pacific regional countries. Like in Singapore telecommunication industries contributes in GDP at 3.5 percent, in Thailand 3.5 percent, in Hong Kong 3.3 percents, in South Korea 2.9, in China 2.6, in Indonesia 2.1 percents respectively. The average value is 3.2 including Malaysia. So Telecom contribution in Malaysian GDP is above average.
If broadband penetration rate of Malaysia 10 percent increases, it will contribute on GDP 1.5 percent to 2 percent. On the other hand if mobile subscriber (voice) penetration rate 10 percent increases, it will contribute on GDP 0.9 percent to 1.3 percent. But more important is that if 1USD spent on mobile, it has impact 3USD on total economy; especially electronics, service, construction and manufacturing etc. So, in Malaysian business ecosystem Telecommunication plays vast role. Malaysian government aware about this issue, hence they welcome any foreign investment on Telecom.
Government has a plan up to 2020 developing their telecom infrastructure; hence all the telecom companies are in pressure situation to develop their network to provide seamless data. In 2009 telecom has contribution on gross national income (GNI) 22billion. In 2020 it will be more than 57 billion. But to develop infrastructure they have to invest more than 68.9 billion within 2020.